HUBCO gets shareholders' nod for Thar Energy, ThalNova support extension

August 7, 2025 (MLN): The shareholders of The Hub Power Company Limited (PSX: HUBCO) have greenlit the extension and amendment of sponsor support for Thar Energy Limited (TEL) and ThalNova Power Thar (Private) Limited (TN).

The resolutions were passed during HUBCO’s Extraordinary General Meeting (EGM), according to the company's statement issued today.

As per the approved resolutions, HUBCO has been authorized to provide or amend guarantees in the form of Standby Letters of Credit (SBLCs) for both TEL and TN.

These SBLCs are intended to guarantee investments either as equity or subordinated debt to cover funding shortfalls under the terms outlined in previously executed Sponsor Support Agreements.

For Thar Energy Limited, HUBCO’s commitment includes guarantees of up to $31 million. The investment support is valid until January 2034 or until the end of TEL’s project loan tenor, whichever is later.

Similarly, the resolution for ThalNova Power Thar (Private) Limited authorizes HUBCO to extend guarantees up to $20m. The backing remains effective until July 2034 or the conclusion of TN’s project loan, as per the amended support agreement.

The Company’s Chief Executive Officer, Chief Financial Officer, and Company Secretary either jointly or severally have also been empowered to negotiate, procure, and execute all necessary documentation related to the issuance, amendment, or renewal of the SBLCs.

This includes entering into security agreements, notices, certificates, and filings as required by lenders or financial institutions.

The continued sponsor support shows HUBCO’s strategic focus on ensuring the financial sustainability and operational progress of its coal-based power projects in Thar, which are critical to Pakistan’s long-term energy infrastructure development.

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